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US Government Informative - Wall Street Bailout

Review by nanomarket on 2008-09-27
LAS VEGAS, NEVADA -- We should all support President Bush’s and Secretary Paulson’s proposal for the government to purchase the bad loans that bank made to thousands of borrowers. I say this as a fiscal conservative, an advocate of a free market and as an American citizen and taxpayer who often does not support President Bush’s policies and decisions. This time, however, he got it right. Moreover, the requested $700 billion is not a bailout but a risky investment that may turn profitable when the economy improves.

Many elected officials oppose the legislation because their constituents complain that the government would be bailing out Wall Street at Main Street’s expense. Yet they must be aware that this so-called “Wall Street Bailout” would purchase bad loans that were made primarily on Main Street. For example, here in Las Vegas, I watched people buy homes that they could not afford. They then took out 2nd and 3rd mortgages to buy pools, cars and other luxuries. In retrospect, financial institutions (aka “Wall Street”) should not have made loans to people who were overextended, had poor credit or could not even afford a down payment on a home that cost five or more times their annual income. However, both presidential candidates have fostered a misconception that blames Wall Street entirely for the loan crisis and portrays the borrowers, who abandoned their homes and their mortgages, as the victims of Wall Street’s greed.

I urge everyone who has taken the time to read this to advise their friends that this so-called “Wall Street Bailout” stems from irresponsible borrowing on “Main Street”.
Comments:29 Replies - Latest reply on 2008-09-29
Posted by Nohandle on 2008-09-27:
Neo, I'd like to see the final proposal. I do think it was not only irresponsible borrowing but irresponsible lending as well. In the past one had to prove he could make his mortgage payments before being extended a loan. None of this "everyone deserves a home" theory. Let's see how this one plays out.
Posted by Anonymous on 2008-09-27:
Bravo, Nohandle!! The ultimate responsibility for the bad loans rests with the banks who made them irresponsibly. When dealing with children (the average American), the banks had the obligation to be the adult and say 'no'. I say we bail out these banks when their indicted executives start hurling themselves out of windows in dispair...or they share cells with the elected vermin who enabled them.
Posted by old fart on 2008-09-27:
Doc.. irresposibility on the part of lenders is key..
My wife, (an unemployed retired housewife) just got a credit limit increase on her WAMU visa card... her credit limit is now 15,000 dollars.. if she chose, she could tell me to "stick it where the sun don't shine" and run off to Acapulco...
What do you think the odds are that WAMU could ever recover the money...
Posted by old fart on 2008-09-27:
A few despondent Bank president leapers would be preferable to bank presidents jumping with a "golden parachute"...
Posted by Nohandle on 2008-09-27:
Ghost, I fear some of those elected vermin who enabled them are included in the closed door sessions going on as we speak.
Posted by Anonymous on 2008-09-27:
Yep, Nohandle...those doors are closed for a reason...so we can't see the shady deal that bunch of crooks is cooking up for their banking buddies. Fart; a cute little candle shop down the street just closed up...bankrupt. I've been watching for the chairman of the Fed to show up at the place with a sack of money to help out the owners. The adage that Americans 'have the right' to fail seems to apply to everyone but banks having CongressCritters nestled in their pockets. Gotta run...BP skyrocketing!
Posted by Nohandle on 2008-09-27:
My blood pressure has gone up as well. I have an employee, who mid week, told me he had been watching the news and was happy he had no money invested in the stock market. I simply asked him if he did not have an IRA account. When he stated "yes" I asked him where did he think those funds were invested? His reaction changed when that light bulb went off. When he realized it included him..well, the attitude changed.
Posted by DebtorBasher on 2008-09-27:
I guess cashing in my 401K last month wasn't such a bad choice afterall...Yeah, I took a penalty, but at least I still got a check!
Posted by DebtorBasher on 2008-09-27:
I did have a 401K with AIG...that was cashed in too.
Posted by DebtorBasher on 2008-09-27:
NoHandle...that goes to show that people don't care what happens to others, but it's a different story when it happens to them.
Posted by nanomarket on 2008-09-27:
I agree with nohandle that both borrower and lenders are at fault, but the borrowers are getting away with their mistakes while the lenders (banks) are not. The borrowers are simply walking away from their debt obligation. They don't go to jail, they don't loose their jobs and they don't pay any penalty. Some, in fact, are better off. Under some new Federal Guidelines (contrived by Barny Frank) delinquent borrower can negotiate a lower principle on their loan. Maybe we should all stop paying our mortgage so that we can get the same deal.

Banks, on the other hand, are paying dearly for their mistakes. Bear Sterns,Lehman Brothers, Countrywide, AIG, Fannie Mae, Indy Mac, Freddie Mac, AIG, WaMu no longer exist. Thousands are unemployed with worthless retirement accounts that had invested in company stock.
Posted by Anonymous on 2008-09-27:
Man, this whole situation has me sick. I pay my bills, I do right in every finanical aspect of my life, while my friend filed bankruptcy on $65K in credit card debt. It was erased. She got a brand new house loan not even four months later and she is defaulting on this bill as well. My tax dollars will be used to bail her out? I'm mad...I am very mad at the whole situation. I have no choice and no voice. Handle is right, 100%.
Posted by Anonymous on 2008-09-27:
PS. I think the people who ran the banks into the ground should be going to jail over this. They had to know they were doing wrong and did it anyway.
Posted by Anonymous on 2008-09-28:
Just wait. Think of all of those student loans about to be defaulted on when the economy tanks. BTW: Lenin, Marx, and Stalin are grinning in their graves...soon the US will have nationalized health care and fully nationalized banking (what's left?). We already have a single-goal political system represented by 'two' identical party ideologies. I'm learning the words to "L'Internationale" instead ot the 'Star Spangled Banner'.
Posted by old fart on 2008-09-28:
How much money has gone into the pockets of the legislators from the banking industry.?
Money talks, bull$hit walks!
The criminals who perpetrated this are no more guilty than the so-call "law makers" we elected to the senate and congress.
The real pipe dream is the idea that the American tax payer will somehow be re-imbursed.
If you believe that is possible, I have a bridge in Mackinaw City Michigan I will sell you "cheap"...
Posted by Nohandle on 2008-09-28:
I read somewhere last week that credit card debt was being considered in the closed door sessions along with the failed mortgages. You know, to help those poor, unfortunate souls out there. I certainly hope that was simply wishful thinking for those who wanted to gain a vote or two. I, again, want to see the final proposal. I am curious as to what will be publically included and what will be eased on through under the radar.
Posted by old fart on 2008-09-28:
By "poor unfortunate souls", I assume that you mean the bankers..?
Posted by Nohandle on 2008-09-28:
I mean the borrower and the lender. The lender who didn't care who credit was extended to and the borrower who would be delighted his debt was forgiven. Enough of all of it. And poor unfortunate souls is my finest sarcasm.
Posted by old fart on 2008-09-28:
Yeah.. silly Ba$tards like me who pay their bills when they're due get no consideration...
Posted by Nohandle on 2008-09-28:
Now, now OF. You shouldn't feel like that. It's the American way now. Everyone deserves a home, a car, a wide screen TV and a cell phone. It's only fair, you know.
Posted by Anonymous on 2008-09-28:
"Yeah.. silly Ba$tards like me who pay their bills when they're due get no consideration...

I know, sweetness, and we, as in people like us, are gonna get handed the bill for all of this crap. I've got four degrees I paid for, I have a car I paid off, and I have a house I have never missed a payment on. When I got divorced, it took me four years and two jobs, but I paid off my part of our massive debt. And now, the people who ran up the exact same debts don't have to pay any of it. What do I get? A little gold star by my credit rating? Big deal. It doesn't mean anything anymore, apparently.

I'm sorry. I am just so mad about all of this.
Posted by old fart on 2008-09-28:
I have all of those except a wide screen TV that is paid for.. The TV is of no interest considering the dreck on air these days.
I got them the hard way, I paid on time with cash..does that make me unamerican?
Posted by old fart on 2008-09-28:
When I clicked on sherdy's comment it was adorned with an ad for debt and foreclosure relief...
Posted by Anonymous on 2008-09-28:
This will make you feel better. According to Fortune Magazine, the IRS is actively targeting small businesses and ignoring corporate tax cheats. Why? Small businesses don't have legions of lawyers or friends in high places. I love politicians...I want to own one too.
Posted by Nohandle on 2008-09-28:
I don't know why I thought of the Aesop fable The Ant and the Grasshopper or the old folk tale The Little Red Hen. Both allegories but perhaps if one can't understand anything else he might understand them. Individuals who work are weary of providing for those who don't. Individuals who provide for their retirement years are equally weary of being expected to feel guilty for those who didn't. When will it stop? You tell me.
Posted by Nohandle on 2008-09-28:
You know Doc, it's the small businessman who is considered rich..by hometown standards. That same guy who for years did without, signed his name on the dotted line at the bank for a loan, worked 18 hours a day to repay that debt and also provide a job for others in the meantime. Let's face it, there are those who choose to work and those who decide someone else should provide. Should those who don't care to work or think others should bail him out from his poor decisions be a consideration? Not in my book.
Posted by Anonymous on 2008-09-28:
Once again, Nohandle, you are right. I would go further. In today's America 'rich' is someone with more than 'me'. Lessee...coveting?
Posted by Nohandle on 2008-09-28:
Does the expression "Class Envy" ring a bell? You might have earned it but I feel it's only fair you share with me. Better still, just give it to me and forget the sharing. I deserve it.
Posted by cycolbur on 2008-09-29:
Personally I think those CEO'S should pay for the mess they have created. I know something has to be done and soon maybe george w bush can grow a back bone and send a message to those wonderful opec peoplw who ant to cut production of oil jsut to raise the price. I guess unteen billion dollars profit was not enough.

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